Tag: hypothesis

DefinitionMisfeasance, nonfeasance, and malfeasance are types of failure to discharge public obligations existing by common law, custom, or statute. Malfeasance What is 'Malfeasance'...

DefinitionIn economics, "rational expectations" are model-consistent expectations, in that agents inside the model are assumed to "know the model" and on average take the...

What is the 'Random Walk Theory' The random walk theory suggests that stock price changes have the same distribution and are independent of each other,...

What is a 'Random Variable' A random variable is a variable whose value is unknown or a function that assigns values to...

What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal...

What is Weak Form Efficiency In finance, weak form efficiency is the idea that prices reflect all information that is publicly available. In other words,...

Traders often enter into weak long positions, which can lead to losses if not managed properly. In this article, we will explore what weak...

What is 'Weak Shorts' Traders or investors who hold a short position in a stock or other financial asset who will close...

Financial Correlation basically measures the relationship between the changes occurring in two or more variables at the same time. Correlation plays a major role...

What is the January Effect and does it exist The January effect is a theory that posits that stock prices tend to rise at the...